Fair Isaac Corporation (FICO): a likely value trap?

Avoid — FICO's core monopoly (mandatory use of its credit score for mortgages) was just ended by regulators, and the "cheap" numbers reflect the old, protected business.

⚠ TRAP Fundamentals76/100

Fell 21% in 11 trading day(s) — now $932.26

Why FICO dropped

The Federal Housing Finance Agency director directed Fannie Mae and Freddie Mac to let all lenders use rival VantageScore instead of FICO's score, effective immediately — ending FICO's decades-long lock on the government-backed mortgage market, causing a 16-17% single-day crash on huge volume.

Fwd P/E 17.6Op margin 53.8%Rev growth 25.7%Debt/equity —Analyst upside 57.0%

How this scored 76/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 34.1%

✅ Generates cash Free cash flow $774M

✅ Not drowning in debt Debt/equity unknown (limit 200%)

✅ Can pay its bills Current ratio 1.2 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 19/25

Operating margin 53.8% 9/9

Net profit margin 34.1% 8/8

Return on equity unknown 2/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 25.7% 9/9

Earnings growth 41.2% 8/8

Expected profit change 53.8% 8/8

Value Is it cheap right now? 21/25

Forward P/E 17.6 7/10

PEG ratio 0.7 8/8

Analyst target upside 57.0% 7/7

Balance sheet Will it survive? 11/25

Debt / equity unknown 3/10

Current ratio 1.2 1/8

Free cash flow $774M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-07. Research only — not financial advice.